Issue of Vopnafjordur EL-05 Exploration licence

Iceland Resources ehf, a natural resource exploration company is pleased to announce the awarding of the first out of eight licences for mineral exploration in Iceland.

The licence covers 598.5 km2 (Figures 1 and 2) and is valid until 15th July 2021 the licence is valid for exploration of minerals with special focus on gold and copper.

Vilhjálmur Þór Vilhjálmsson CEO of Iceland Resources comments “the company has worked very hard over the last three years in researching the best possible targets in Iceland, culminating in applications to the National Energy Authority for eight prospects around Iceland. The first licence has now been awarded after a legally required consultation period and the company is excited to start exploration work on the permit. Our team of geologists have identified a number of promising targets and expect to spend a few weeks onsite in August.”

Historical work

Exploration in Vopnafjordur was carried out by Malmis between 1991 and 1993 in the form of BLEG surveys and vein sampling. The BLEG surveys returned somewhat inconsistent results, with the 1992 survey returning more promising results than the 1991 and 1993 surveys. Despite this, samples taken within and around an interpreted Caldera filling of a tertiary central volcano in the north of the licence, showed abundant sulphides. Vein sampling carried out at the same time showed a number of veins with significant Au enrichment.

Follow-up work was carried out by Melmi in 1997, who carried out stream sediment and helicopter-assisted rock chip sampling in the Vopnafjordur area. The rock chip sampling programme focused on areas of strong alteration, known quartz-carbonate-pyrite veining and in selected structural settings. The sampling programme confirmed anomalous antimony, selenium and tellurium values in the northern rhyolitic centre and further identified anomalous gold, antimony, bismuth and zinc in an acid intrusion in the central southern part of the licence.

2016 Workplan

A comprehensive review of the BLEG and rock chip sampling programme was undertaken alongside satellite interpretation of the whole of the Vopnafjordur licence. In addition to the two volcanic centres identified in the 1990s, a number of regional fault zones associated with elevated levels of key pathfinder elements and occasionally gold was identified. These areas will be investigated by the Company’s geological team during August 2016, who will carry out close-spaced traverse mapping and grab sampling of key fault structures identified by the desk study.

About Iceland Resources ehf

Iceland Resources ehf is a junior mineral exploration company with a focus on the Scandinavian region. The company has one licence in the Vopnafjordur area in Iceland and further seven areas pending issue totalling over 4.000km2. The company also has an earn in agreement with Melmi ehf and Gold Island Ltd to earn into the well-known Thormodsdalur licence where gold grades up to 415 g/t have been identified and the partners are working towards a NI 43-101 compliant resource.